How did HIMX's revenue and expenses shift in Q4 2024?

Himax Technologies (HIMX) experienced a notable increase in revenue and profitability in Q4 2024 compared to the previous quarter. Here's a detailed analysis:

1. Revenue Analysis:
   • Himax Technologies reported a revenue of $906.74 million for Q4 2024.
   • This is a significant increase from the previous quarter, where the revenue was $669.56 million.
   • The company's full-year revenue for 2024 was $906.8 million, indicating a strong performance throughout the year.
2. Segmental Revenue Breakdown:
   • The revenues from third parties, net, were $906.74 million.
   • Revenues from related parties, net, were $24000.
   • The substantial revenue from third parties reflects the company's successful market presence and ability to handle rush orders efficiently.
3. Operating Expenses: There were no reported operating expenses in Q4 2024. This is a significant aspect as operating expenses can impact the net profit. The absence of such data suggests that Himax managed its costs effectively during the quarter.

4. Profitability Metrics:
   • The company's net profit for 2024 was $79.8 million, which is a substantial increase from $50.6 million in 2023.
   • The operating income for 2024 was $68.2 million, which is a 57% increase from $43.2 million in 2023.
   • The gross margin reached 30.5% in Q4 2024, exceeding the company's guidance.
5. Comparative Analysis with Guidance:
   • Himax's Q4 2024 revenues exceeded the guidance range issued on November 7, 2024, which anticipated a slight decrease to flat revenue.
   • The gross margin also surpassed expectations, driven by a favorable product mix and cost improvements.
6. Future Outlook:
   • For Q1 2025, the company guided a decrease in revenues by 8.5% to 12.5% quarter-over-quarter, reflecting the typical low season demand due to Lunar New Year holidays.
   • However, the gross margin is expected to be around 30.5%, indicating the company's focus on maintaining profitability despite the seasonal decline in revenues.

In conclusion, Himax Technologies demonstrated robust growth in revenue and profitability in Q4 2024, outperforming its own guidance and previous quarterly performance. The company's strategic focus on cost management and market responsiveness has been instrumental in achieving these results.